In the always competitive environment of employee recruitment and retention, a strong employee benefit program can help keep employee turnover low. A lot of employers are trying to find ways to make employees to look beyond the amount on their pay cheques.

By establishing an employee benefit program, small business owners gain the following:

• A competitive edge in the job market;
• An affordable way to help protect employees and their families;
• A tax-effective form of compensation.

With several insurance companies now offering this product, the start-up costs of an employee benefit program have decreased. Employers also have the flexibility to choose which benefits that they would like to offer.

An employee benefit program can be started by a small business with as few as two employees. Most programs start with a base benefits package. This includes, but is not limited to: employee life insurance, accidental death and dismemberment, extended health care, and emergency travel assistance.

The employee will then have the option of choosing additional benefits that could include: dependant life insurance, extended heath options (private hospital room, pay-direct drug card, deferred drug card, vision care), dental care, short term disability, and long term disability.

Recently, administration and understanding have been eased for both the employer and employee of most programs. All information can be forwarded to the insurance company through a secure Internet site. There are also pre-authorized debit services available for monthly premium payment.

At retirement, most group benefit programs allow the employee to maintain many of the benefits he or she currently enjoys with the employer. As long as the application is made within a certain time period, acceptance is guaranteed and no medical questionnaire is necessary. This will provide the employee and family with supplemental health insurance past his or her retirement date.

A group benefit program is an effective tool for both new and established businesses. Happy, strong employees are keys to making every business successful. Please see your advisor for more information on group benefit programs.

September 16, 2009